How Sourcing Ranks Are Used in Multiechelon Replenishment Planning

The sourcing ranks that you set in sourcing rules are used during the bottom-up pass of multiechelon replenishment planning for creating unconstrained planned orders and unconstrained planned order demands.

The multiechelon replenishment plan first checks if supply is available at the source location with the sourcing rank of 1. If supply isn't available at that location, the plan checks if supply is available at the source location with the sourcing rank of 2, and so on. Existing supply is used at the source locations in the order of the sourcing ranks. If the existing supplies aren't enough at any of the source locations, the demand is placed on the source location with the sourcing rank of 1.

Multiechelon replenishment planning supports sourcing ranks and sourcing allocation percentages with order modifiers.

Consider an organization named S1 that has source locations named M1 and M2. The sourcing rank for M1 is 1, and that for M2 is 2. An unconstrained planned order of 100 units is placed on S1.

In Example 1, if the projected available balance for M1 is 110 units, and that for M2 is 200 units, then the value of the Unconstrained Planned Order Demand measure for M1 is 100, while the measure value for M2 is zero.

In Example 2, if the projected available balance for M1 is 70 units, and that for M2 is 50 units, then the value of the Unconstrained Planned Order Demand measure for M1 is 70, while the measure value for M2 is 30. All the available supply from M1 is used before the supply from M2 is used for fulfilling the unconstrained planned order.

In Example 3, if the projected available balance for M1 is zero units, and that for M2 is 40 units, then the value of the Unconstrained Planned Order Demand measure for M1 is 60, while the measure value for M2 is 40. All the available supply from M2 is first used, and the remaining demand is placed on M1 for fulfilling the unconstrained planned order.

This table lists these examples:

Example	Source Location	Projected Available Balance at the Source Location	Unconstrained Planned Order Demand
1	M1	110	100
1	M2	200	0
2	M1	70	70
2	M2	50	30
3	M1	0	60
3	M2	40	40